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Europe crypto regulation

European cryptocurrency technology

Today, cryptocurrencies have turned the global financial market. And every day more and more people are not only interested, but also become participants in operations with cryptocurrency. The cryptocurrency itself, despite a single concept, combined two opposite areas at once. The first is technology, to which authorities in almost all countries have an increased interest, but here lies one of the main contradictions with the second area – the economy. Cryptocurrency technology is in most cases open and accompanied by a community that advocates freedom and has a mediocre relationship to money. But the economic side of cryptocurrencies is perceived in different countries in different ways. Some are calm and gradually introduce regulation, while others do not see ways of application and believe that the use of free digital assets can only be for conducting illegal transactions.

Features of European cryptocurrency regulation

Currently, European Central Bank classifies cryptocurrencies (including Bitcoin) as convertible decentralized virtual currencies. When using Bitcoin as a means of payment, transactions to exchange it for fiat currencies should not be subject to value added tax (VAT). Europe crypto regulation has been supplemented by the amendment of the EU Anti-Money Laundering Directive, which aims to reduce the risk of using virtual currency to launder criminal funds. According to these changes, «virtual currency platforms» and crypto-currency service providers are obliged to follow the same requirements for identifying their customers and tracking suspicious transactions as follow other financial organizations, including banks.

Bulgarian regulation of cryptocurrency

The regulation of cryptocurrencies in Bulgaria regards digital money as a financial asset. This state has recognized the legitimacy of Bitcoin. The main condition for the use of cryptocurrency in Bulgaria is the payment of a tax of 10% from the exchange or sale.

Regulation of cryptocurrency in UK

The UK Tax Service (HMRC) defines cryptocurrencies as assets or «private money», and also reserves the right to levy certain taxes when carrying out transactions related to cryptocurrencies. The new rules would require traders to report suspicious transactions and disclose their identity. According to the regulator, the fact that transactions now take place anonymously makes the cryptocurrency market attractive to criminals.

Crypto regulation in the Czech Republic

The Czech Republic was one of the first in the world to take steps to regulate cryptocurrencies. Anonymity of transactions was restricted – crypto exchanges and other exchange services obliged to verify their clients in order to counter money laundering and terrorist financing. But transactions with cryptocurrencies are not taxed and are not subject to licensing. In general, local authorities are loyal to cryptocurrency.

Swiss crypto regulation

Switzerland quickly legitimized the rapidly growing cryptocurrency industry by publicly declaring bitcoin and other digital currencies as payment devices. Certain companies dealing with classic currencies (primarily exchange exchanges and exchanges) are required to obtain licences, as well as to comply with standard requirements to counter money laundering and terrorist financing, including identifying their customers The regulation of cryptocurrencies in Sweden assumes that transactions with cryptocurrencies are not subject to VAT, and mining is taxed on income from work or income from business.